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Ecuador: Ecuador Agriculture Profile 2012

2012/03/08

Ecuador Agriculture Profile 2012

Reference Date: 10-June-2011

FOOD SECURITY SNAPSHOT

Drought affects 2011 maize and rice production

Drought affects 2011 cereal production prospects

Harvesting of 2011 winter maize and rice crops is in progress. Early 2011 rice estimates point to a production of 1.4 million tonnes, 12 percent less than last year. Similarly, maize production estimates show a decrease compared to the low level of last year. The decrease in the 2011 cereal production prospects is due to the reduction in the area sown and a decrease in yield which resulted from the lack of rain from February to April and above average temperatures in coastal areas, particularly in the production province of Guayas. At the beginning of April, the government declared a state of emergency in six of the country's 24 provinces: Loja, Los Ríos, Guayas, Santa Elena, Manabí and El Oro. Rainfall in May arrived too late to avoid crop losses. Official estimates indicate that around 180 000 hectares of rice and maize crops were lost during the period of water shortage. The government has assigned USD 46 million to tackle the state of emergency and allow for supplementary irrigation. In 2011, an increase is forecast for maize imports while rice stocks should guarantee a sufficient supply despite losses.

On 1 June, the government set the minimum price support at Ecuador Sucre 16.5 (USD 0.00064) per quintal (45.36 kg) for 2011 winter maize.

Reference Date: 06-April-2010

FOOD SECURITY SNAPSHOT

Heavy rains caused flooding and affected nearly 5 thousand families in the country's coastal provinces
Government is supporting 2010 wheat production to increase average yields

Heavy rains end prolonged dry weather conditions

Prolonged drought conditions affected the country in the last months of 2009, in particular the province of Manabí where important staple crops such as maize and beans have reported some localized losses.

Then, in February, heavy showers caused floods and landslides. The most affected provinces were Esmeraldas, Manabí, El Oro, Guayas and Los Ríos, where almost 70 percent of the total annual maize production is concentrated.

Harvesting of 2010 winter maize, mainly yellow is scheduled to start in May. Despite localized damages to newly born plants caused by the reported flooding, planted area, approximately 430 000 hectares, is very similar to previous year.

Driven by government measures, planting the 2010 wheat crop is approaching completion

In northern and central highlands, planting of 2010 main wheat crop is almost complete and sowed area is similar to the average level of the last five years. However, government incentive programs, including the distribution of improved seeds and subsidies for the purchase of agricultural inputs, are expected to boost average yields and increase production.

Similarly, planting of the first 2010 rice crop, which represents almost 75 percent of total production, is recently completed in coastal provinces. The area planted is reported at 330 000 hectares, a level similar to the average of the last three years. .

Increased domestic demand for wheat in 2009/10

Cereal import requirements for marketing year 2009/10 (July/June) are forecast to slightly increase compared to the level of 2008/09, mainly due to the high domestic demand of wheat and wheat products, favoured by more stable international prices, and wider dissemination of school feeding programmes.

03/12/2010 Heavy rains end prolonged dry weather conditions

Driven by government measures, planting the 2010 wheat crop is approaching completion

Increased domestic demand for wheat in 2009/10

Agriculture

Until a petroleum boom began in the early 1970's, agriculture was the mainstay of Ecuador's economy. It is still an important sector, providing about one-third of all employment and many of the nation's exports. Most of the arable land is owned by a tiny minority of Ecuadorians—the landed upper class. Farmers are largely illiterate and poor. Virtually all the Indians are subsistence farmers.

Both tropical and temperate crops are grown. Commercial plantations of bananas, coffee, cacao, sugarcane, rice, and cotton are typical along the coastal plain. In the hill country and mountain valleys, temperate crops are grown, mostly for home use. These crops include cereals, especially corn; vegetables, particularly beans and potatoes; and fruits. Except on large plantations, farming methods are poor and crop yields are low.

Forestry, and Fishing

Ecuador's forests are a potential source of wealth. Among the commercial forest products are hardwood, balsa wood, tagua nuts, cinchona bark (the source of quinine), palm fibers, rubber, palm oil, and kapok.

Fish are plentiful in rivers and coastal waters and commercial fishing is an increasingly important sector of the national economy.